Rwandan business community has been tipped on the capital market structure and rules by a UK university professor.

The lecture organised by the Private Sector Federation (PSF), a voice of the Rwandan business community was to offer knowledge about IPOs, game theory, and auctioning.

Paul Milgrom, an Economic Professor from the Stanford University, UK, said lecturing the business community about Initial Public Offers (IPOs), game theory and auctioning is crucial for business development.

"Capital markets are fundamental to the profitability of businesses acting as another source of income through procurement of shares.”

The game theory is the study of the ways in which strategic interactions among rational capital market players. They determine the profitability of the capital markets to both players.

Milgrom also said capital market is a good source of raising capital to finance business expansion and other investment options available.

"It is a component of financial sector and securities traded, there, are usually long dated financial instruments,” he explained.

Professor Milgrom further said knowledge on the rules and structure of the market provided the private sector with choice of how to fare in the market. 

Molly Rwigamba, the Employment and Capacity Building Director said the lecture was necessary since the private sector did not have vast knowledge about how to participate in the capital markets and IPOs.

She commented that the capital market would be more vibrant if the private sector was more conversant with the rules and structure of the market.

Representatives from the business community lauded the lecture. They regretted having missed the opportunity to benefit from capital markets.

Ends